PBR Dividend Type Payments
Although PBR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Petroleo Brasileiro S.A.- Petrobras to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Petroleo Brasileiro S.A.- Petrobras (PBR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 13.99 | 14.00 | 14.00 | +0.11 | 16.4M | - | 60B |
PBR Dividend-Like Income Using Covered Calls
With PBR at 14.00, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 0.42 | 0.1 |
| 5% | 0.70 | 0.2 |
| 10% | 1.40 | 0.4 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On PBR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 14 | 14.00 | 0.11 | 4 | 2.8 | 0.00 (0.0%) | |
| Apr 17 | 14.00 | 0.63 | 66 | 1.0 | 0.00 (0.0%) | |
| 5% Yield On PBR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 14 | 14.00 | 0.11 | 4 | 2.8 | 0.00 (0.0%) | |
| Apr 17 | 14.00 | 0.63 | 66 | 1.0 | 0.00 (0.0%) | |
| 10% Yield On PBR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 14 | 14.00 | 0.11 | 4 | 2.8 | 0.00 (0.0%) | |
| Apr 17 | 14.00 | 0.63 | 66 | 1.0 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | LYFT dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | FSLY dividend | |
| 3. | TLT dividend | 8. | KWEB dividend | 3. | TTD dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | RDDT dividend | |
| 5. | FXI dividend | 10. | AMD dividend | 5. | QS dividend | |
Want more examples? PBPB Dividend | PBR.A Dividend
